The approval of accounts is a legal obligation applicable to all companies under Law 6.404/76 (“Corporate Law”, art. 132) and the Civil Code for limited liability companies (art. 1078).
Every year, no later than 4 months after the end of the financial year, the company’s directors must approve the financial statements, resolutions on the allocation of profits and the distribution of dividends, as well as other resolutions, when necessary, by means of a shareholders’ or quotaholders’ meeting, or by unanimous written resolution.
The absence of a resolution can hinder operations involving the company, such as borrowing from financial institutions, taking part in tenders and other forms of public or private competition, whether they are conditional on the presentation of a document proving that the accounts have been approved for at least the last 5 years.
There is also a risk that the company will be prevented by the Board of Trade from filing subsequent acts until the annual approval of accounts has been fulfilled.
It is worth highlighting the importance of relying on professional support in relation to business regularity.
The law firm Marcos Martins Advogados remains attentive to any decisions and is able to answer any questions from companies in this situation.
Click here to speak to one of our specialists.
